Robert M. Tarola, CPA, CGMA and President of Right Advisory LLC, provides insights on the new lease accounting standard. All US and most non-US companies must adopt a new lease accounting framework over the next one-to-two years. That framework requires the recording of assets and liabilities for all leases greater than one year in duration. Previously “off-balance sheet” leases will need to be analyzed, documented and remeasured for accounting purposes.

The challenge to do so can be daunting. Companies will have to identify, catalogue, assess and calculate a new lease liability for financial reporting. In essence, moving footnote information onto the balance sheet. And these calculations can be complex.

It is important for companies to begin the process now. And where leasing is significant, consider the tools and time needed to get it done right. In most companies this will likely require specialized lease administration software as well as a dedicated team to complete the project.

Technology is driving change in financial reporting. Where once financial statements would be read like a book, they are now being consumed digitally through standardized tagging supported by regulators throughout the world. That trend is increasing as regulators move to a “digital-only” reporting framework.

The problem is that the digital financial statements are not (yet) required to be audited – despite a groundswell of interest by investors and analysts. The auditing profession is encouraged by investor advocacy groups to determine how best and to quickly assume responsibility for digital financial statements.

All US and most non-US companies must adopt a new lease accounting framework over the next one-to-two years. That framework requires the recording of assets and liabilities for all leases greater than one year in duration. Previously “off-balance sheet” leases will need to be analyzed, documented and remeasured for accounting purposes.

The challenge to do so can be daunting. Companies will have to identify, catalogue, assess and calculate a new lease liability for financial reporting. In essence, moving footnote information onto the balance sheet. And these calculations can be complex.

It is important for companies to begin the process now. And where leasing is significant, consider the tools and time needed to get it done right. In most companies this will likely require specialized lease administration software as well as a dedicated team to complete the project.

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Stay tuned for additional information on lease accounting and services to assist your company with implementation.

An accomplished business executive with over four decades of leadership experience, Robert Tarola serves as the president of Right Advisory, LLC. In addition to his work at the Washington, DC-based firm, Robert Tarola serves the American Kidney Fund as chairman of the board of trustees.

Dedicated to improving the lives of individuals with kidney disease, the American Kidney Fund (AKF) oversees a variety of education, research, advocacy, and support programs. In order to continue its work, the organization relies on money raised through donations and fundraising activities. Each year, the AKF holds several events, including The Hope Affair, its annual national gala.

Launched over nine years ago, The Hope Affair brings together policymakers, patients, and health advocates to raise funds and celebrate inspirational individuals who are fighting kidney disease. On October 4, 2017, the AKF held its ninth annual national gala at the Andrew W. Mellon Auditorium in Washington, DC.

At the event, the AKF and its supporters recognized three honorees, including Justin Condon, the recipient of the 2017 KIDNEYNATION Award of Excellence. The other two special guests were Luis Matos, the 2017 AKF Hero of Hope, and Skyler Moats, the 2017 Calendar Kid Cover Artist. In addition to celebrating the three honorees, the event raised $33,000 for the AKF Disaster Relief Program, which assists dialysis patients following natural disasters.

Robert Tarola leads Right Advisory LLC as the Washington, DC-based consulting firm’s president. Outside of his professional pursuits, Robert Tarola serves as treasurer on the national board of trustees of the American Kidney Fund. Mr. Tarola has lived over 32 years with a transplanted kidney from his brother.

In pursuit of its mission to support patients fighting kidney disease, the American Kidney Fund (AKF) oversees a range of programs that provide health education and direct financial assistance. The organization also conducts a program that helps fund summer enrichment activities for children with kidney problems.

AKF’s Summer Enrichment Program provides financial assistance that enables kids in need to attend a summer camp of their choice. Funds supplied through the program, which are limited to $200 per child, can be used to pay for camp tuition, transportation, and supplies.

The program is open to applicants currently undergoing dialysis as well as those who have had a kidney transplant within the last five years. Applicants must also demonstrate financial need based on factors such as income, family size, and liquid assets.

Right Advisory LLC is pleased to announce the launch of its new enhanced website, stated Robert M. Tarola, president. Right Advisory’s new site provides a more comprehensive source of company information and services such as important links, testimonials and current news. Please visit www.rightadvisory.com today